Change of Job and Change of Residence - Geographical Mobility of the Labour Force

Solving regional labour market discrepancies through geographical mobility has gained increased political interest. The decision of changing job is closely related to the decision of changing residence as either change may imply a change in commuting cost. In this paper we set up a search model that can explain the residence and job changing behaviour of workers. The model is a double search model, in the sense that workers search for better jobs and dwellings simultaneously. Results show that the interrelationship between change of job and change of residence is very complex. However, scope for mobility inducing policies are especially found through the housing market parameters.